DAVAO CITY – Philippine business leaders identified broad reforms ranging from comprehensive tax rate reductions to a national ID system as their most urgent concerns during the Sulong Pilipinas conference at SM Lanang. The event was convened by the Phillipine Chamber of Commerce and Industry, the Mindanao Business Council, and the economic team of President-elect Rodrigo Duterte which will take office in 10 days.
More than 450 delegates representing the Philippines’ major business organizations participated in the consultation workshops on inclusive growth. Discussions revolved around the 10-Point Socioeconomic Agenda presented by incoming Finance Secretary Carlos Dominguez at the start of the conference.
Sulong Pilipinas generated hundreds of recommendations from the participants who were divided into 10 breakout groups. This was the first time an incoming administration consulted with the business community even before its assumption of office. At the end of the two-day summit, President-elect Duterte was given the following top 10 actionable recommendations (in order of importance):
COMPREHENSIVE TAX REFORM
As their topmost concern, participants recommended a comprehensive tax reform package including the reduction of corporate and personal income taxes as well as lower capital gains tax rates patterned after the taxation systems of Singpore and Hong Kong. To compensate for the deficit resulting from reduced tax rates, the foremost suggestion is to increase excise taxes by expanding the definition of luxury goods.
NATIONAL ID SYSTEM
Past administrations attempted to institute a nationwide identification system but lacked the political will. Participants agreed there is a pressing need for such an ID system that will allow government agencies to provide more targeted social services and prevent double-counting or leakage. The system is expected to improve access health, education, food, shelter, and conditional cash transfer programs, aside from enhancing peace and order.
EASE OF DOING BUSINESS
Automation and streamlining of processes at the loval and national levels were recommended to reduce processing time for permits and bottlenecks in land titling. Other suggestions to cut red tape were: expansion of the “single window” concept, extension of validity for various licenses, and use of “negative confirmation” for government approvals.
IMPROVEMENT OF INTERNET AND TELECOM SERVICES
Amending the existing telecommunication law or Republic Act 7925 should be prioritized, along with the passage of a law to regulate wireless/mobile internet services to make us competitive with our ASEAN neighbors. To ensure enhanced connectivity, workshop participants recommended the creation of internet cooperatives in far-flung areas similar to existing electric coops.
SUPPORT SERVICES FOR FARMERS
Delegates proposed the adoption of value-chain development in rural-based enterprises, including agriculture and mariculture. Recognizing the vast untapped potential of the agri-sector, they recommended a support system through financing, technology, and logistics to raise rural productivity and employment.
VALUE-ADDED, RESPONSIBLE MINING
Participants want the next administration to limit and gradually eliminate the export of mineral ore. Instead, they recommended a shift to value-added processing that would facilitate a strong domestic mineral products industry.
DEVELOPMENT OF REGIONAL INDUSTRIES
There is a need for a national strategy to determine sectors where the country has the greatest competitive advantage and optimize the value of our land, people, and other resources. Delegates suggested an action plan to identify industry clusters and regions where SMEs should locate to avail of lower transport, energy, and logistics costs.
IMPROVEMENT OF TRANSPORT NETWORKS
A clamor to fast-track infrastructure projects nationwide resonated among the participants. Priority should be the development of regional airports, seaports, and mass transit projects such as the North-South Railway, C-6 Expressway, Cebu Bus Rapid Transit, and Davao Port projects.
REVIEW OF CONDITIONAL CASH TRANSFER PROGRAM
Perceived as a program that promotes dependency on government, the CCT must be reviewed to allow for long-term intervention that teaches the poor to catch fish rather than receive dole-outs. Participants suggested enhancing social protection initiatives through skills development, cash for work, livelihood projects, among others.
REDUCTION OF PPP BOTTLENECKS AND RESPECT FOR CONTRACTS
Concrete measures should be made to remove roadblocks preventing speedy implementation of vital infra projects, such as right-of-way issues and lack of synergy between LGUs and national government agencies. Delegates want an assurance from the incoming administration that existing and future contracts will be honored.
